Tax time is here and if you had withholdings on your pay or made over $12,950 you have to file taxes. The easiest way is online with tax website and you have a lot of choices. You can file taxes easily without any upgrades offered to you. If your Adjusted Gross Income (AGI) is under $73,000 and you use the standard deduction, filing your federal taxes are free.
Don’t overpay to have taxes done. Approximately 90% of filers only need standard 1040A. Discounts for filing are everywhere from banks, credit cards, credit unions, financial websites, group and employee discounts. Saved $50 this year alone on federal and state filing taxes.
AGI is your gross income less 401K/HSA deductions plus interest & investment income. If your income is over $73,000 you can shop several programs below. Standard deductions of $12,950 for singles and $25,900 for married couples are what most people need. Itemizing is possible if you have higher expenses for business, medical, mortgages and charitable deductions.
On the IRS.GOV home page click the box “Do Your Taxes for Free”. Click the box “Choose a Free File Online Product”. Then you can read which programs you qualify for. IRS.GOV provides “Lookup Tool” to prequalify you showing which programs work for you.
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
Tax terminology is confusing. Publication 17 “Your Federal Income Tax (for Individuals)” provides a Free reference (PDF) explaining in plain language more detail what you to do in each tax section and box no if you have questions. Is my bible from preparing my taxes on paper. Between Publication 17 and Google have figured out several complicated situations correctly.
Recommend all these programs:
FreeTaxUSA.com - did my sister’s taxes in about half hour. One year she needed to cash in a savings bond requiring filing Schedule B Interest form. FreeTaxUSA has simple navigation between sections and help explanations were short and easy to read. Comfortable to use. If you have any experience with a 1040A, provides basic support. State return costs $14.99.
CreditKarma.com - expanded into tax preparation. Federal and state returns are free provided you sign up for an account. May not be able to use if you need a few special forms. No personal support like more expensive programs. A good choice if you made over $73,000.
TaxSlayer.com - Not used but gets great reviews. $0 Simple tax return including state tax return. If you don’t qualify for free starts at $17 plus additional for state return. Premium is $37 and Self Employed is $47. Works for most people comfortable filling out forms with basic support.
TaxACT.com - used for sister’s returns many years. Program for those who are comfortable filling out forms with basic support. Highly recommend. Lot of discounts available.
TurboTax.com Online & Phone App - Using almost 20 years now and is my favorite. Software suggests deductions you may have missed. Excellent online and community support if you have questions. Professional support is available too. eFile is painless. If you have business, investments, side hustles and itemize worth the money. Upsell offers get annoying! Highly recommend TurboTax. Lots of discounts available.
H&R Block Online & Phone App - One of the largest nationwide tax preparer organizations. Their training is the standard CPAs take annually to know tax law updates. Have not used myself, but Dad and Mom worked for H&R Block after retiring. Reviews are good too. Online provides Free, Deluxe, Premium and Self Employed levels that are higher priced. If your situation is more complicated well worth the money.
CPA/Tax Preparers - If you have multiple businesses, investments or rental properties well worth the investment for advice, professional contacts and guidance. Recommend my former CPA in CA any day. Wish had income and those investments to use one.
Online tax programs are updated daily, very accurate, and catch errors or typos. E-filing and direct deposit is the way to go to get your refund in weeks. Most of us a simple process of 1 to 2 hours. Start with all your forms to fill out data. Know you can do your taxes easily at minimal cost.
